HB 2272 Summary

• Establishes fiduciary duties for pharmacy benefits managers (PBMs) operating in Arizona, requiring them to act with care, skill, prudence and diligence on behalf of covered entities.

• Requires PBMs to disclose all conflicts of interest, financial arrangements with drug manufacturers, and any payments or benefits received from drug substitutions or volume-based sales to covered entities.

• Mandates PBMs to pass through in full any payments or benefits derived from prescription drug substitutions, volume discounts, or manufacturer arrangements to the covered entities they serve.

• Requires PBMs to register annually with the Arizona Department of Health Services and file annual certifications of compliance; subjects PBMs to market conduct reviews and audits at least once every three years.

• Establishes a temporary study committee to examine the feasibility of using Section 340B of the Public Health Service Act to provide discounted prescription drugs to vulnerable patient populations, with a report due by November 15, 2010.